Fin 806/ch:2 comprehensive revision

The first step in Mortgage loan Process is :

• Sign documents to complete purchase

• Complete loan application

• Gather and verify information

• Make a credit decision

All listed information are considered as personal borrower information EXCEPT:

• Age

• Bank statement

• Date of Birth

• Phone number

All are considered as consumer loans EXCEPT:

• Home loans

• Auto loans

• Personal loans

• Goverment backed loans

A loan which is repaid through regular periodic payments:

• Unsecured loan

• Overdraft

• Credit card

• Term loan

Credit cards are considered as ------------------ loans :

• Term

• Revolving

• Secured

• Student

When the lender inform the borrower about the true cost of the loan, this considered as

• Plans

• Responsibilities

• Rights

• Obligation

Consumer lending also called:

• Commercial

• Business

• Retail

• Wholsale

Write the four steps of loan process according to their correct sequence

Auto loans are considered as ------------------ loans :

• Secured

• Non- term

• Revolving

• Unsecured

Unsecured loans are loans that are not backed-by ............................ :

• Contract

• Warranty

• Collateral

• Guarantee